Sending Bitcoin can sometimes feel like sending a letter in the mail. Sure, you can email it, but you may want to send it 'the old-fashioned way,' as a quirky gift or as part of a bigger treasure hunt. But when the recipient's address is on the other side of the world, you might get nervous about how long it will take to arrive. After all, you didn't want to send it to the wrong address, only to find out it goes to some random guy instead of your friend. The same goes for Bitcoin transfers. You want to ensure everything is done correctly before sending Bitcoin to the receiver's address so the transaction goes smoothly. And then, you want to know how long it will take to get there. Will your friend get it in a few minutes, or will it take hours or longer? The answer to how long does Bitcoin take to send can vary based on several factors, including the current state of the Bitcoin network. In this article, we'll discuss what you need to know about sending Bitcoin, including how long it takes to send and what is Bitcoin halving.
When you're ready to send Bitcoin, Bitcoin Magazine Pro's Bitcoin analysis tool can help you understand the current state of the Bitcoin network to help you confidently send your Bitcoin with minimal delays.
How Long Does Bitcoin Take to Send?
It's easy to underestimate what a Bitcoin transaction is. Let’s remember that bitcoins don’t physically exist. There’s no solid coin to hold in your hand, nor a token or slip of paper to signify the value of your Bitcoin. Bitcoins exist in the virtual realm as a series of transactions verified essentially, legitimized on the hyper-secure, public ledger known as the “blockchain.”
If you have Bitcoin, you possess information: the history of your bitcoins and a pair of “keys” allowing you to use them as public and private keys. Think of your Bitcoin as a collection of information tokens stored in a glass box.
Understanding Public and Private Keys in Bitcoin Transactions
The public key is the label of your box. Everyone knows this is your box and how much bitcoin your box contains. Like a bank account routing number, your public key is shared so people can send you money. By contrast, your private key is safely guarded; it is the only way to open my glass box of Bitcoin.
Access to private keys is akin to controlling the bank account, so people take great pains to prevent private keys from falling into the wrong hands. In sum, bitcoins are summaries of transaction information. Public keys allow you to possess that information. Private keys authorize you to send that value to another public key.
How Does a Bitcoin Transaction Work?
Say you want to give your friend Dave a generous birthday gift of five bitcoin (5 BTC). You must use your private key to send a message to the public blockchain announcing this transaction. This transaction message contains three parts:
- Input: the source transaction of the bitcoins you’re sending to Dave. This code explains how the bitcoins came to your public key.
- Amount: the number of bitcoins, in this case, five that you intend to send to Dave’s.
- Output: Dave’s public key, or the address to which you send the bitcoins.
This three-part transaction message is sent to the blockchain; transactions involve a lot. For a detailed breakdown, check out this Bitcoin transaction viewer.
How Miners Verify and Update Bitcoin Transactions
Once the blockchain receives it, data crunchers, known as “miners,” work to verify the transaction. There’s a complicated, very technical background to miners and the work of bitcoin mining, but we'll keep it simple to understand here.
Miners solve complex math problems that create new signatures and update transaction histories for Bitcoin transactions. In your case, the miners will verify that you have five bitcoins to send to Dave, then update those bitcoins’ list of past transactions to note that you’re sending five bitcoins to Dave’s public address.
How Long Does Bitcoin Take to Send?
On the Bitcoin network, the average confirmation time for a BTC payment is about 10 minutes. However, transaction times can vary wildly. This is because it is affected by total network activity, hashrate, and transaction fees.
If the Bitcoin network is congested, there will be a backlog of transactions in the mempool. This would result in users paying more transaction fees to get transactions going faster. This occurred in April 2021, when average Bitcoin transaction fees reached $59.
What is a Bitcoin Mempool?
A mempool is a record of all Bitcoin transactions that a miner has not validated and added to the next block on the blockchain. A mempool is temporarily stored on each node in the network.
Mempool transactions are periodically cleared when a new block is added to the blockchain.
Pending transactions waiting in mem pools will only be cleared (processed) once they meet the minimum transaction fee threshold. Transactions with low fees often have to “wait” more than one block in the mempool until they are processed and confirmed.
Bitcoin Verification
Could you wait hours before a transaction on the Bitcoin blockchain is completed? In some ways, using Bitcoin is like driving down a freeway. A high number of BTC transactions means there will be a lot of congestion, slowing everything down. Paying bigger Bitcoin transaction fees is a surefire way to jump to the front of the queue and cut wait times. It's the equivalent of passing through traffic with a police escort.
When sending Bitcoin, you need to incentivize miners on the blockchain to include your transaction in the next block, especially when the mempool is full. Given how block sizes are fixed at 1MB and a limited number of miners, you may have to pay a much higher fee to get first-class treatment.
How Many Confirmations Are Needed for Bitcoin Transactions?
Once a new transaction is verified and included in a new block, it will count as one confirmation. After an average of 10 minutes, another block will be created with that transaction, which will count as two confirmations.
Some services only require one confirmation, while some exchanges require three or more BTC confirmations. For Binance, one block confirmation is needed for BTC deposits, while two block confirmations are needed for Bitcoin withdrawals. For Coinbase, three block confirmations are required before considering the final BTC transaction.
How Long Does a Bitcoin Transaction Confirmation Take?
A Bitcoin transaction often goes through several confirmations on the blockchain before it is fully cleared. That's because there's a risk that unconfirmed transactions could be reversed, or the BTC could be spent twice. Confirmation takes place whenever a new block is created. If you're transferring a large amount of Bitcoin to a company, some will require as many as six confirmations.
How long would this transaction for the transfer take to confirm? About an hour. Remember, each time you send a transaction, you are making a transfer (or transfers) and must wait until the transfer is “confirmed” by the miners.
How to Check Bitcoin Transaction Time
There are some great tools out there that can give you an estimate of the average time it'll take to complete a BTC transaction or transfer, like Blockchain.com and Statista. You can also get guidance on the transaction fees you should add, often denoted as satoshis (there are 100,000,000 satoshis in one Bitcoin). If you submit a Bitcoin transaction with lower fees, you risk upsetting Bitcoin miners.
They'll throw a tantrum (or, in reality, will just ignore your lower transaction fees in favor of higher ones,) and it's possible your payment will end up languishing in a long list of unconfirmed transactions. However, you shouldn't worry too much, as it will get processed whenever there's a massive lull on the Bitcoin blockchain, and miners have nothing else to do.
How to Check if Bitcoin Transaction is Verified?
You can check if miners have validated your Bitcoin transaction through a blockchain explorer. For instance, by using CoinMarketCap blockchain explorer and inputting the Bitcoin transaction hash, you can see the status of your Bitcoin transaction and whether it is valid.
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Is There a Way to Estimate How Long a Transaction Will Take Before Sending It?
Yes, getting a rough idea of how long your Bitcoin transaction might take before you send it is possible. This can help you decide on the best time to transact or adjust the fee you’re willing to pay. Here’s how you can make an educated guess:
Check the Mempool Size
The mempool is where all unconfirmed transactions wait. If it’s full, transactions will take longer. Websites and tools that show the current size of the mempool can give you an idea of how busy the network is.
Use a Transaction Fee Estimator
Many Bitcoin wallets and online services offer fee estimators. These tools examine the network’s current state and suggest a fee to confirm your transaction within your desired time frame.
Look at Recent Confirmation Times
You can see current wait times by examining how long recent transactions have taken to confirm. This can change rapidly depending on the network queue and transaction fees.
By considering these factors, you can better gauge how long it will take for your Bitcoin transaction to be confirmed and adjust your fee to speed up the process if necessary.
What Causes Slow Bitcoin Transaction Speeds?
Bitcoin transactions don’t always happen fast. Sometimes, they take longer than we hope. Here are a few reasons why this might happen:
Busy Network
Imagine the Bitcoin network as a road. If many people are using it at the same time, it gets crowded. This is like rush hour traffic. When the network is busy, your transaction might wait longer.
Low Fees
Your transaction gets a low priority if you pay less. It’s like boarding a bus; those who pay for a VIP ticket get on first. If your fee is low, miners might pick others’ transactions over yours, making you wait longer.
Small Blocks
Blocks in the Bitcoin blockchain can only hold so many transactions. If a block is full, your transaction has to wait for the next one. It’s like waiting for the next train when the first is full.
What Is the Biggest Mistake to Avoid When Sending Bitcoin?
When sending Bitcoin, making sure you do it right is crucial. Here are the biggest mistakes you should avoid:
- Wrong Address: The biggest mistake is sending Bitcoin to the wrong address. Once you send it, you cannot get it back if the address is wrong.
- Not Double-Checking: Always double-check the address before you send Bitcoin. A small mistake in the address can lead to big problems.
- Ignoring Transaction Fees: Not paying attention to transaction fees can delay your transfer. Adjusting the fee according to how fast you want the transaction to be confirmed is important.
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Are There Any Alternative Methods for Sending Bitcoin That Might Be Faster?
1. Lightning Network: The Turbocharger for Bitcoin Transactions
The Lightning Network speeds up Bitcoin transactions and lowers their costs. A layer two protocol creates a network of peer-to-peer payment channels operating on the Bitcoin blockchain. Creating a channel can take time, but once it’s established, users can send an unlimited number of transactions between each other that are almost instant and have extremely low fees.
Moreover, these transactions are private and don’t need to be recorded on the Bitcoin blockchain unless the channel is closed. Opening and closing a channel requires a Bitcoin transaction and can take time depending on the network congestion, but the Lightning Network can facilitate almost instant Bitcoin transactions.
2. Liquid Network: The Express Lane for Bitcoin Transfers
The Liquid Network is a sidechain-based settlement network for traders and exchanges. It offers faster Bitcoin transactions and enhanced privacy. It’s like a VIP lane for Bitcoin transfers. Liquid is particularly useful for large transactions that require fast confirmation times to avoid any potential issues with market volatility.
Its operations are similar to the Lightning Network, as users can transfer Bitcoin to the Liquid Network and create private transactions away from the main blockchain. Only when these transactions are finalized do they return to the Bitcoin network. As a sidechain, moving assets to the Liquid Network also helps reduce congestion on the Bitcoin blockchain.
3. Using Exchanges: The Fast Track for Sending Bitcoin
Sometimes, transferring Bitcoin between accounts on the same exchange can be instantaneous. This is because the exchange internally credits your account, avoiding the blockchain. While this method can be useful for quick transfers, it does come with some caveats.
You must send your Bitcoin to an exchange, which adds time to the process. This method only works if you and the person sending Bitcoin to have accounts on the same exchange. Regardless, exploring these alternatives can provide quicker options for sending Bitcoin, especially when time is of the essence.
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